Institutional and Nonbuilding Gains Temper Declines in Commercial Starts
BOSTON, MA 鈥� October 21, 2026 鈥� Total construction starts declined 1.5% in September to a seasonally adjusted annual rate of $1.33 trillion, according to . Nonresidential building starts fell 6.3% over the month, residential starts ticked down 0.3%, and nonbuilding improved by 5.5%. On a year-to-date basis, total construction starts were up 14.3% through September. Nonresidential starts were up 23.7%, nonbuilding starts improved by 18.4%, and residential starts were down 1.7% over the same period. For the 12 months ending September 2026, total construction starts were up 13.6% from the 12 months ending September 2025. Residential starts were down 2.9%, nonresidential starts were up 18.7% and nonbuilding starts were up 23.6%.
鈥淐onstruction starts edged lower in September, but gains in institutional and nonbuilding construction helped cushion the decline,鈥� said Sarah Martin, Director of Economic Research at 抖阴下载网站. 鈥淭hese sectors provided a counterweight to weaker commercial and single-family starts.鈥�
Nonresidential
Nonresidential building starts fell 6.3% in September to a seasonally adjusted annual rate of $583 billion. Commercial starts were down 18.4% over the month. After a very strong August, hotel activity settled back 46.3% in September, alongside a 21.4% decline in offices and data centers, as well as a 21.0% pull back in manufacturing starts. Meanwhile, parking garages (+33.9% m/m) and commercial warehouses (+0.8%) improved over the month. Institutional starts had a more positive month, improving 16.3% in September, driven by stronger education starts (38.4% m/m) and miscellaneous institutional starts (6.5% m/m). Healthcare starts declined 3.0% over the month. On a year-to-date basis through September, nonresidential starts are up 23.7%. Commercial and industrial construction have gained 46.3%, while institutional starts are down 1.8% over the same period.
For the 12 months ending September 2026, total nonresidential starts were up 18.7% compared to the 12 months ending September 2025. Commercial starts were up 47.7%, institutional starts decreased 2.8%, and manufacturing starts were up 3.4% over the same period.
The largest nonresidential building projects to break ground in September were $4.6 billion South Valley Data Center in Silver Springs, Nevada, the $4.3 billion Beacon Point Data Center in Robstown, Texas, and the $2.0 billion Vantage V41 Data Center Campus in Fredericksburg, Virginia.
Nonbuilding
Nonbuilding construction starts expanded 5.5% in September to a seasonally adjusted annual rate of $377 billion. Supporting this rise, highway and bridge starts grew 20.8% throughout September, alongside miscellaneous nonbuilding starts (+13.7% m/m) and environmental public works (+0.8% m/m). Utility starts, meanwhile, pulled back 4.1% over the month. On a year-to-date basis through September, nonbuilding construction was up 18.4% alongside the 70.1% year-to-date growth in electric power/utilities, 3.8% in miscellaneous nonbuilding, and 0.9% growth in highways and bridges. Environmental public works are down 4.1% year-to-date.聽聽
For the 12 months ending September 2026, total nonbuilding starts were up 23.6%. Environmental public works fell by 4.9% compared to the 12 months ending September 2025. Highway and bridge starts were up 1.3%, miscellaneous nonbuilding starts were up 11.3% and utility/gas starts increased 90.8% over the same period.
The largest nonbuilding projects to break ground in September included the $1.7 billion Big Rooter Power Solar project in Bremond, Texas, the $1.6 billion Entergy Cypress Solar project in Redfield, Arkansas, and the $1.2 million Southwest Inertie North power lines project in Jerome, Nevada.
Residential
Residential building starts ticked down 0.3% in September to a seasonally adjusted annual rate of $366 billion. Single family starts declined 7.4% m/m, while multifamily starts improved 11.3% m/m. On a year-to-date basis, residential starts are down 1.7%, with single family starts down 4.5% and multifamily starts up 3.0%.
For the 12 months ending September 2026, total residential starts fell 2.9%. Single family starts fell 7.6% compared to the 12 months ending September 2025, and multifamily starts increased 5.3% over the same period.
The largest multifamily structures to break ground in September included the $820 million Four Seasons condominium tower in Austin, Texas, the $544 million One Montague Place Mixed Residential & Commercial Tower in Brooklyn Heights, New York, and the $329 million Ombelle Mixed Use Residential Tower in Fort Lauderdale, Florida.
Regionally, total construction starts in September receded in the South Central (-20% m/m), Midwest (-13% m/m), and Northeast (-1% m/m). Conversely, the West (+33% m/m) and the South Atlantic (+7% m/m) improved over the month.聽聽
